Overcoming the Liability of Smallness: Export Associativity and Hypothesis Testing in the Peruvian Alpaca Sector

This empirical study investigates how export associativity enables Micro and Small Enterprises (MSEs) in the Peruvian alpaca textile cluster of Arequipa to overcome the "liability of smallness." Integrating Transaction Cost Theory, Resource Dependence Theory, Social Exchange Theory, and Institutional Patronage Theory, the research formulates and tests a structural model using Partial Least Squares Structural Equation Modeling (PLS-SEM) on a stratified probabilistic sample of N=210 MSE owners and managers. The findings reveal that opportunistic behavior is the primary inhibitor of relational trust, whereas sector support and formal relational governance significantly drive the strategic adoption of export associativity. Furthermore, associativity directly enhances both economic satisfaction (β=0.482,p<0.001) and non-economic satisfaction (β=0.395,p<0.001). Practical governance strategies for textile networks and public policy recommendations for export promotion in emerging economies are detailed.